Being a small business owner is to live in critical and uncertain times. Over 10 Million small businesses were on the brink of extinction last year. More than ever, small businesses need fast working capital to keep their doors open. If you want money from the big banks, expect to wait weeks or months for your month. We offer fast small business loans within 8 hours. Learn more by reading this article.
What are Fast Small Business Loans?
Fast small business loans are not actually loans at all, but rather business cash advances which is a type of merchant cash advance. Big banks only approve 13% of small businesses who apply for loans, leaving more than 87% in the dark and struggling to stay afloat.
Fast business loans is not a term that is synonymous with traditional banking. That is why the alternative lending industry is exploding right now.
During the pandemic, big banks essentially turned their backs on desperate small and midsize businesses who needed fast working capital to stay in business. The more big banks tighten regulations, the faster the alt lending space continues to grow.
Alternative lending has many advantages over traditional lending because they use a combination of algorithms, automated processes, AI, and other streamlined metrics to get you funding within 8 hours in most cases.
Big banks cannot keep up with this new technology which favors business owners with no credit, or poor credit and can automatically match the business owner with a variety of lenders within minutes, if not seconds.
How Fast Small Business Loans Work
Unlike bank loans, business cash advances can be applied for and funded on the same business day. The most important factor in being approved for a fast business cash advance is your monthly revenue.
If you make $5,000 per month solely from your business, not any other income sources, chances are good that you can be approved. If you want more than $25,000, you need to make $20,000 per month to get a loan of up to $2 million dollars. But, we will concentrate on the $25,000 same day advances for now.
It takes 5 minutes to apply and you can view the terms and pre-qualification amount you may be approved for before accepting them. If you like the terms you see you can proceed to the second part of the application by clicking the button that you accept the terms.
On the second page of the application you will see a section where you submit your bank info. This indicates to our lenders that you have connected your business checking account and are requesting a contract.
If everything looks good with your bank info, the underwriters will create a contract and email it back to you. Also, look for a text from them and check your spam folder for any emails about an important contract.
Once you sign the contract and send it back, the underwriters will do a more thorough underwriting and look for any outstanding loans or liens you might have. We will discuss how liens and other outstanding loans can affect your loan in the next section.
What are the Interest Rates for Fast Loans?
Business cash advances and merchant cash advances use factor rates instead of interest rates. Common interest rates range from 1.19 to 1.50 and are easy to calculate.
The quicker you pay off the advance, the lower the factor rate is. If you pay off your advance in 30 days, you’re looking at a 1.19 factor rate with us. If you take 6 months to pay off your advance you are looking at a 1.49 factor rate.
Fast Small Business Loan Requirements
The requirements for same day funding for small businesses are straight-forward:
- Six months in business: Your business needs to be operating and generating revenue for six months, however we only look at the last three months to get an average revenue figure.
- $5,000 a month in business revenue: We look at your business revenue in general, but specifically in the last three months. Are you generating $5,000 or more per month with just your business – no other income streams unrelated to your business aloud.
- 450 FICO Score: Having the lowest credit score requirements in the industry, merchant cash advances undercut credit score requirements of the big banks by at least 200 basis points.
- No More Than 5 NSFs in Last 90 Days: NSF’s are negative days in your business checking account. During the final underwriting, underwriters will take a closer look at the health of your bank account.
- Outstanding Loans: If you already have an outstanding loan, the amount you are requesting to borrow may be reduced. However, getting a “second position” loan is available to you from us.
- Felonies or Other Malicious Activities: We pride ourselves on only working with business owners who are ethical and upstanding in their business practices. We won’t tolerate felons or lend to industries that are considered illegal or malicious.
We have two types of loans in the image below:
Why Use Fast Small Business Loans
As a small business owner, you know exactly where the money should go. We can tell you some of the most popular ways business owners have used the funds.
- Paying Off Old Debt: Nothing feels better than to clear the slate with your business and use some of the working capital to pay off overdue bills, especially with merchants who help your bottomline.
- Expansion: Although 2020 was an incredibly tough year for most businesses, many businesses are now running right out of the gate by using their same day funding to expand their business. Whether it’s an additional location, or building onto an existing structure, working capital can be used for that.
- Marketing: If your business is not online you are missing out on a ton of exposure, traffic, and money. Most successful businesses have at least a one-page website and have reviews on many online review sites, like Yelp, Google, Manta, Trustpilot, etc. You can also hire a social media marketer to get your brand seen more by using Youtube, TikTok, Instagram, and more.
However you use the funds, it’s up to you. We work with over 75 lenders and over 700 industries to ensure that almost all businesses in America stay open.
Applying for the Fastest Small Business Loans
We are committed to helping the small businesses in America get the funding they need (within 8 hours) to keep their doors open. We are a family-owned business ourselves and feel a personal loss every time we see a store, restaurant, or other business close permanently. Click the link below to apply and thanks for reading. We hope you can get the funds you need asap!
Erik C. Johnson